Natural Gas Prices are Slowing Production
Friday, July 20, 2012
According to Energy Digital, a global energy portal, the oversupply of natural gas has caused prices to drop. The drop in price is resulting in the slowing of production, which includes shutting down some Marcellus rigs, temporarily.
The article claims that the number of rigs operating in Pennsylvania is down 29 percent from its peak last year.
Read it:
“The slowdown is no surprise seeing as many exploration companies have been planning on shifting drilling equipment to areas where the oil and natural gas is more profitable. The warm winter, further depressing demand and prices, had an influence as well.”
Over half of the wells drilled in Pennsylvania are not producing yet. Right now the state has more than 5,000 wells drilled.
» Via: Energy Digital › Natural Gas Prices Force Down Marcellus Rigs
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.